Microeconomics
The Effects of Supply and Demand on Society Upon starting Microeconomics in the fall, I didn't have a clue as to what this class consisted of. Over the past 6 weeks I have learned a lot about how the economy works. Now I have a better understanding of the different factors that influence the supply and demand of a product. When I think of supply and demand, I think about popular gifts around Christmas time. During holidays, companies must make very important decisions to sell their product. Last Christmas there was a popular gift on the market, Sony's Playstation 2. Many people had this gift on their wish list because it was a hot commodity fresh on the market. The suppliers knew about the high demand for this entertainment system, and in exchange raised their prices dramatically because of the limi
This is a prime example of the concept of supply and demand, and how it affects a large portion of our society. Because people have infinite wants and desires, there will always be instances like this. With the lower price, the demand for these energy drinks has gone up and people are going to buy more. This caused the price to decrease for other energy drinks. The competitors marketed their drink to the same young individuals with a slightly lower price. I've learned the two factors that determine this are price and the competitive market. Even though it was sold in stores for over 300 dollars, they quickly sold out. In that case, a doll that normally costs 30 dollars was sold for prices over 300 dollars! This happened because the supply was so much lower than the demand. For instance, the new popular energy drink called Red Bull was introduced about 3 years ago and was a big hit. Soon other producers came out with different energy drinks. Soon consumers were buying more of the competitors drink because of the lower price. Stores stocked more on their shelves, and since it was no longer the "hot item", the price consistently decreased. I saw the price increase as high as 600 dollars, and people were still buying it! After Christmas, the demand for the Sony Playstation went down. By raising their prices, suppliers limited the amount of people who were willing and able to purchase this product.
Common topics in this essay:
Red Bull,
Sony's Playstation,
Tickle Elmo,
Demand Society,
Playstation Stores,
energy drinks,
supply demand,
lower price,
producers energy drinks,
competitive market,
red bull,
300 dollars,
producers energy,
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Acceptance Essays
